Delta to Cut Capacity 40%
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Michael,
I'm always prepared to be wrong and try to practice frequently to be ready for it. This time I might be right though. How many take it is yet unknown. This from LOA 20-01:
3. Special Incentive Line For the May and June 2020 bid periods, the parties agree to reinstate Special Incentive Line (“SIL”) LOA #2 and amend as follows:
Delete Paragraph 2. 3)Amend Paragraph 9. a) to read:a)a pilot will receive a SIL guarantee of 55 hours of pay and credit at his applicable composite hourly rate.
I'm always prepared to be wrong and try to practice frequently to be ready for it. This time I might be right though. How many take it is yet unknown. This from LOA 20-01:
3. Special Incentive Line For the May and June 2020 bid periods, the parties agree to reinstate Special Incentive Line (“SIL”) LOA #2 and amend as follows:
Delete Paragraph 2. 3)Amend Paragraph 9. a) to read:a)a pilot will receive a SIL guarantee of 55 hours of pay and credit at his applicable composite hourly rate.
From Delta's pilot recruiting Facebook page. Looks as if they're trying not to "United" people:
"Presently we have extended Contingent Job Offers (CJOs) to pilots for classes extending through the end of April, and we take that commitment very seriously. Some of those pilots, specifically the ones starting this coming Monday the 16th, and Monday the 23rd, are already inside the window where they’ve had to give 2 weeks notice to their employers to come work for us. For those pilots, as they were told on the phone yesterday, class will be held, and they should report to Atlanta as scheduled.
For classes starting outside that two week window, a final decision has yet to be made, and we have to ask those pilots for their patience. We hope to have that decision this coming week, possibly as early as Monday, and they will hear very soon after we know."
"Presently we have extended Contingent Job Offers (CJOs) to pilots for classes extending through the end of April, and we take that commitment very seriously. Some of those pilots, specifically the ones starting this coming Monday the 16th, and Monday the 23rd, are already inside the window where they’ve had to give 2 weeks notice to their employers to come work for us. For those pilots, as they were told on the phone yesterday, class will be held, and they should report to Atlanta as scheduled.
For classes starting outside that two week window, a final decision has yet to be made, and we have to ask those pilots for their patience. We hope to have that decision this coming week, possibly as early as Monday, and they will hear very soon after we know."
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It does look like DL are really trying to do what's right through all this. Just look at the homepages on the websites of the top four - BA, AA, UA, DL. The first three are all trying to sell seats at all costs, some of them even saying don't bother calling us unless your flight is within 72hrs - we're too busy. DL are focused much more on caring for their existing passengers and reassuring new ones, while still leaving the ability to book new flights top and center of every page. I know who I'd trust!
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Even if they get furloughed a couple of days later (I've seen it happen) it's a good idea to show up for class to get that seniority number. Delta gives out a number on the first day. Seniority within the class is determined by the last four digits of the Social Security Number, highest last four equals lowest seniority number. Any company transferees are placed at the top according to their Delta date of hire.
What were United's moves with ending hiring that you are referencing? In the past United has usually honored job offers years later when hiring resumed. They wanted you to be current on something, not an easy task in a downturn market flooded with airline pilots.
Even if they get furloughed a couple of days later (I've seen it happen) it's a good idea to show up for class to get that seniority number.
Even if they get furloughed a couple of days later (I've seen it happen) it's a good idea to show up for class to get that seniority number.
The way I heard/saw it told was that UAL cancelled a class of 23 pilots 3 days before the start date leaving those 23 people high and dry after they'd cut bait from their previous employers. Very poor form.
These 23 didn't have the option of showing up and getting a seniority number. Perhaps they'll be recalled to a class at some future date but that doesn't make up for the short term heartlessness of stranding 23 pilots who moved mountains to get to UAL.
In the overall scheme of UAL, honoring one class date and adding 23 more pilots before they stopped hiring would be insignificant. Quitting your previous employer to go to UAL only to be stranded 3 days before the promised class date is not insignificant to those 23 pilots. It really doesn't even make any difference how those 23 people weathered the event, it's slimy behavior on UAL's part.
And yes, I'd imagine it's been done before by some other airline. We'll see how DL manages their similar circumstances of stopping hiring with class dates scheduled and promised.
Bafan,
While no one at UAL liked what was done, UALPA reached out to all of them to make sure they were ok financially and that all had jobs to go to. The majority were able to secure new employment or return to their previous employers. In addition UAL pilots started a fund to cover any expenses for anyone in the class that experienced financial difficulty. Also, UALPA secured positions in class with two of the United Express carriers, without needing an interview, the following week.
While it’s not how any of the UAL pilots would have like things to have been done. As a group, we stepped up and did what was right.
While no one at UAL liked what was done, UALPA reached out to all of them to make sure they were ok financially and that all had jobs to go to. The majority were able to secure new employment or return to their previous employers. In addition UAL pilots started a fund to cover any expenses for anyone in the class that experienced financial difficulty. Also, UALPA secured positions in class with two of the United Express carriers, without needing an interview, the following week.
While it’s not how any of the UAL pilots would have like things to have been done. As a group, we stepped up and did what was right.
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Here are the current inbounds to Marana, I'm sure lots more to follow.
Bafan,
While no one at UAL liked what was done, UALPA reached out to all of them to make sure they were ok financially and that all had jobs to go to. The majority were able to secure new employment or return to their previous employers. In addition UAL pilots started a fund to cover any expenses for anyone in the class that experienced financial difficulty. Also, UALPA secured positions in class with two of the United Express carriers, without needing an interview, the following week.
While it’s not how any of the UAL pilots would have like things to have been done. As a group, we stepped up and did what was right.
While no one at UAL liked what was done, UALPA reached out to all of them to make sure they were ok financially and that all had jobs to go to. The majority were able to secure new employment or return to their previous employers. In addition UAL pilots started a fund to cover any expenses for anyone in the class that experienced financial difficulty. Also, UALPA secured positions in class with two of the United Express carriers, without needing an interview, the following week.
While it’s not how any of the UAL pilots would have like things to have been done. As a group, we stepped up and did what was right.
Yes, I had heard what UALPA and individuals did on behalf of the 23. That's why I said this in a previous post: "It really doesn't even make any difference how those 23 people weathered the event...".
It's to be applauded but the fact they were able to land on their feet is merely a lucky coincidence. It's still abominable behavior on UAL's part.
In contrast, here's what AA is reputed to have done for a delayed class:
17 Mar class:
“While your orientation is suspended, your employment at American is not. We want to do the right thing by you and by your families, so we will be making you an American Airlines employee as of March 17. As an employee, you will receive a paycheck, have travel privileges and be eligible to enroll in our medical coverage. We will reschedule your orientation once life returns to normal. Renee, Dena, Don, or Teri will reach out to you tomorrow to address any questions you may have.”
Quite a contrast if it's accurate.
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New memo out today. From CNN:
From CNN's Greg Wallace and Kylie Atwood
Delta needs to “essentially hit the ‘pause button’” on some of its operations, CEO Ed Bastian told employees in a memo Wednesday, making further major cuts to its operations that include parking more than half of its aircraft.
The company’s cuts include cutting back 70% of its capacity, further pay cuts for executives and company leadership, as well as paring back its operations in airports around the country – including its major hub in Atlanta.
“With fewer customers flying, we need less space in airports,” Bastian wrote. “Among other initiatives, we will temporarily consolidate airport facilities in Atlanta and other locations as necessary and close the majority of our Delta Sky Clubs until demand recovers.”“We are reducing our active fleet size by parking at least half of our fleet – more than 600 aircraft,” he wrote, as well as retiring older planes.
He also said “roughly 10,000” employees have volunteered to take leaves of absence.
Bastian did not announce any layoffs, but he did not count out the possibility.
“I know everyone is concerned about the security of your jobs and pay. Given the uncertainty about the duration of this crisis, we are not yet at a point to make any decisions," Bastian wrote.
Some context: Bastian's message followed a telephone call he and executives at other US airlines held with President Trump to discuss the state of the industry and its request for billions of dollars of government financial assistance.
Bastian said the discussions have been "constructive."
Internal Delta memo: Airline to "hit the pause button" on some operations
From CNN's Greg Wallace and Kylie Atwood
Delta needs to “essentially hit the ‘pause button’” on some of its operations, CEO Ed Bastian told employees in a memo Wednesday, making further major cuts to its operations that include parking more than half of its aircraft.
The company’s cuts include cutting back 70% of its capacity, further pay cuts for executives and company leadership, as well as paring back its operations in airports around the country – including its major hub in Atlanta.
“With fewer customers flying, we need less space in airports,” Bastian wrote. “Among other initiatives, we will temporarily consolidate airport facilities in Atlanta and other locations as necessary and close the majority of our Delta Sky Clubs until demand recovers.”“We are reducing our active fleet size by parking at least half of our fleet – more than 600 aircraft,” he wrote, as well as retiring older planes.
He also said “roughly 10,000” employees have volunteered to take leaves of absence.
Bastian did not announce any layoffs, but he did not count out the possibility.
“I know everyone is concerned about the security of your jobs and pay. Given the uncertainty about the duration of this crisis, we are not yet at a point to make any decisions," Bastian wrote.
Some context: Bastian's message followed a telephone call he and executives at other US airlines held with President Trump to discuss the state of the industry and its request for billions of dollars of government financial assistance.
Bastian said the discussions have been "constructive."
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Today's Delta memo from the CEO:
To: Delta Colleagues Worldwide
From: Ed Bastian, CEO
Subject: Protecting Delta's Future
As the COVID-19 (coronavirus) pandemic progresses globally, its impact on our business continues to grow. To contain the virus, social distancing has become widespread and new travel directives are being enacted, now including more than 40 nations worldwide.
First and foremost, I want to remind everyone of the importance of your health and safety. It is safe to travel, but always make sure you are taking the necessary steps to ensure your health and that of our customers and our people. The CDC has important guidelines available, so please follow all necessary precautions.
Following the national emergency that was declared by the U.S. President, demand for travel has dropped significantly. Revenue for the month of March is now expected to decline by almost $2 billion over last year, with our projection for April falling even more. Therefore, we will continue to make significant capacity reductions with a 70 percent systemwide pullback planned until demand starts to recover. Our international operation will take the largest reduction, with over 80 percent of flying reduced over the next two to three months.
We are having constructive discussions with the White House and Congress, and remain optimistic that our industry will receive support to help address this crisis. That said, we have to continue to take all necessary self-help measures. Cash preservation remains our top financial priority right now. Making swift decisions now to reduce the losses and preserve cash will provide us the resources to rebound from the other side of this crisis and protect Delta's future.
We are deferring nearly all of our capital spending, including all new aircraft deliveries, until we have better clarity on the duration and severity of the situation.
In addition, we are looking to secure more than $4 billion in cash savings in the June quarter alone. This will include capacity-related savings as we suspend flying, and we are also targeting expense reductions from:
As we draw down our operation, I know how painful it is to essentially hit the "pause button" on so many things that are core to what we do for our customers and our mission to connect the world. But what will never stop is the spirit of the Delta people, which is shining through brighter than ever even in this dark moment. I have received hundreds of emails and messages from my Delta colleagues over the past week, and your passion, commitment and confidence in our future is truly inspiring.
In particular I want to thank the Reservations and Customer Care team, who are doing incredible work managing an unprecedented volume of calls and taking care of our customers who need to adjust their travel plans.
Make no mistake – we will get through this. This is a temporary health crisis and an end will, hopefully soon, be in sight. Never underestimate the power of travel as an essential service to our world. All of our work over the past decade to fortify our company and transform our business model will serve us well in the weeks and months ahead, as we endure and, eventually, recover.
Please continue to make the health and safety of each other and our customers our top priority. Wherever possible, we are moving to have our people work remotely to reduce the risk of transmission. For those working in the operation, continue to always follow our safety and security guidelines to minimize distractions, and call a safety time-out when needed. And please be mindful in your personal lives to take steps to protect yourself and your loved ones, including social distancing and recognition of those who are most vulnerable, including the elderly and those in poor health. Be aware that if your doctor advises you to stay home because you may have been exposed to COVID-19, you will be paid and won't have to deduct that time from your PPT bank.
I know everyone is concerned about the security of your jobs and pay. Given the uncertainty about the duration of this crisis, we are not yet at a point to make any decisions. And those are very painful decisions to even consider. But know that my No. 1 priority is taking the very best care of all of you. In this unpredictable environment we can't take any options off the table, but any steps that would affect your jobs or pay rates would be the absolute last thing we would do, and only if necessary to secure Delta's long-term future.
I will be in touch again by the end of the week with additional updates as we navigate this together. Thank you for all you are doing for each other, for our customers, and for your communities and your loved ones in this unprecedented time.
Ed
From: Ed Bastian, CEO
Subject: Protecting Delta's Future
As the COVID-19 (coronavirus) pandemic progresses globally, its impact on our business continues to grow. To contain the virus, social distancing has become widespread and new travel directives are being enacted, now including more than 40 nations worldwide.
First and foremost, I want to remind everyone of the importance of your health and safety. It is safe to travel, but always make sure you are taking the necessary steps to ensure your health and that of our customers and our people. The CDC has important guidelines available, so please follow all necessary precautions.
Following the national emergency that was declared by the U.S. President, demand for travel has dropped significantly. Revenue for the month of March is now expected to decline by almost $2 billion over last year, with our projection for April falling even more. Therefore, we will continue to make significant capacity reductions with a 70 percent systemwide pullback planned until demand starts to recover. Our international operation will take the largest reduction, with over 80 percent of flying reduced over the next two to three months.
We are having constructive discussions with the White House and Congress, and remain optimistic that our industry will receive support to help address this crisis. That said, we have to continue to take all necessary self-help measures. Cash preservation remains our top financial priority right now. Making swift decisions now to reduce the losses and preserve cash will provide us the resources to rebound from the other side of this crisis and protect Delta's future.
We are deferring nearly all of our capital spending, including all new aircraft deliveries, until we have better clarity on the duration and severity of the situation.
In addition, we are looking to secure more than $4 billion in cash savings in the June quarter alone. This will include capacity-related savings as we suspend flying, and we are also targeting expense reductions from:
- All Delta officers will take a 50 percent pay cut through June 30, with directors and managing directors taking a 25 percent cut during that same period.
- As I mentioned last week, I've cut my own salary by 100 percent through the next six months. Our Board of Directors elected to forego their compensation over the next six months as well.
- With fewer customers flying, we need less space in airports. Among other initiatives, we will temporarily consolidate airport facilities in Atlanta and other locations as necessary and close the majority of our Delta Sky Clubs until demand recovers.
- We are reducing our active fleet size by parking at least half of our fleet – more than 600 aircraft. We also will be accelerating retirements of older aircraft like our MD-88/90s and some of our 767s.
- We are reducing any maintenance spend that is not necessary to support the safety of our operation.
- We have reduced most contractor spend, except where needed to support the operation.
As we draw down our operation, I know how painful it is to essentially hit the "pause button" on so many things that are core to what we do for our customers and our mission to connect the world. But what will never stop is the spirit of the Delta people, which is shining through brighter than ever even in this dark moment. I have received hundreds of emails and messages from my Delta colleagues over the past week, and your passion, commitment and confidence in our future is truly inspiring.
In particular I want to thank the Reservations and Customer Care team, who are doing incredible work managing an unprecedented volume of calls and taking care of our customers who need to adjust their travel plans.
Make no mistake – we will get through this. This is a temporary health crisis and an end will, hopefully soon, be in sight. Never underestimate the power of travel as an essential service to our world. All of our work over the past decade to fortify our company and transform our business model will serve us well in the weeks and months ahead, as we endure and, eventually, recover.
Please continue to make the health and safety of each other and our customers our top priority. Wherever possible, we are moving to have our people work remotely to reduce the risk of transmission. For those working in the operation, continue to always follow our safety and security guidelines to minimize distractions, and call a safety time-out when needed. And please be mindful in your personal lives to take steps to protect yourself and your loved ones, including social distancing and recognition of those who are most vulnerable, including the elderly and those in poor health. Be aware that if your doctor advises you to stay home because you may have been exposed to COVID-19, you will be paid and won't have to deduct that time from your PPT bank.
I know everyone is concerned about the security of your jobs and pay. Given the uncertainty about the duration of this crisis, we are not yet at a point to make any decisions. And those are very painful decisions to even consider. But know that my No. 1 priority is taking the very best care of all of you. In this unpredictable environment we can't take any options off the table, but any steps that would affect your jobs or pay rates would be the absolute last thing we would do, and only if necessary to secure Delta's long-term future.
I will be in touch again by the end of the week with additional updates as we navigate this together. Thank you for all you are doing for each other, for our customers, and for your communities and your loved ones in this unprecedented time.
Ed
- All Delta officers will take a 50 percent pay cut through June 30, with directors and managing directors taking a 25 percent cut during that same period.
- As I mentioned last week, I've cut my own salary by 100 percent through the next six months. Our Board of Directors elected to forego their compensation over the next six months as well.
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https://www.flightglobal.com/busines...137265.article
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After a booming week, it appears the future is 'up in the air.'
https://www.flightglobal.com/busines...137265.article
https://www.flightglobal.com/busines...137265.article
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Here's the letter from airline CEO's (including FedEx and UPS) to the Congressional leadership urging a bailout package. Emphasis is mine on the furlough protection clause. An opener I suppose and CYA for the inevitable furloughs if they don't get the requested payroll protection 'grants' of at least $29 billion.
https://news.delta.com/deltas-ed-bas...-aviation-jobs
March 21, 2020
Dear Leader McConnell, Leader Schumer, Speaker Pelosi and Leader McCarthy:
On behalf of 750,000 airline professionals and our nation’s airlines, we respectfully request Congress to continue to move expeditiously to pass a bipartisan proposal that includes a combination of worker payroll protection grants, loans and loan guarantees and tax measures.
Time is running out. The worker payroll protection grants are critical to saving the jobs of our employees. Over the past week we have communicated to our employees the dire situation we are in and the potential impacts on them if our government doesn’t step up to help.
We are doing our part. Over the past decade we have reinvested over 73 percent of our operating profits back into our people and product, creating good paying jobs at a rate that has outpaced other sectors. As a result of a global pandemic and government actions to contain it, we are now undertaking over $30 billion of self-help measures, including asking our employees to take voluntary unpaid time off, parking planes and trying to obtain financing in today’s credit market. Those markets are closing up. Given the extreme nature of this situation, we respectfully urge Congress not to pursue opportunistic measures that will hurt, not help our ability to recover Unless worker payroll protection grants are passed immediately, many of us will be forced to take draconian measures such as furloughs.
If Congress is able to reach a bipartisan agreement on these three critical elements, airlines are committed to ensuring that:
We are united as an industry and speaking with one voice. We urge you to swiftly pass a bipartisan bill with worker payroll protections to ensure that we can save the jobs of our 750,000 airline professionals who are coming to work every day to serve the traveling and shipping public.
Thank you,
Dear Leader McConnell, Leader Schumer, Speaker Pelosi and Leader McCarthy:
On behalf of 750,000 airline professionals and our nation’s airlines, we respectfully request Congress to continue to move expeditiously to pass a bipartisan proposal that includes a combination of worker payroll protection grants, loans and loan guarantees and tax measures.
Time is running out. The worker payroll protection grants are critical to saving the jobs of our employees. Over the past week we have communicated to our employees the dire situation we are in and the potential impacts on them if our government doesn’t step up to help.
We are doing our part. Over the past decade we have reinvested over 73 percent of our operating profits back into our people and product, creating good paying jobs at a rate that has outpaced other sectors. As a result of a global pandemic and government actions to contain it, we are now undertaking over $30 billion of self-help measures, including asking our employees to take voluntary unpaid time off, parking planes and trying to obtain financing in today’s credit market. Those markets are closing up. Given the extreme nature of this situation, we respectfully urge Congress not to pursue opportunistic measures that will hurt, not help our ability to recover Unless worker payroll protection grants are passed immediately, many of us will be forced to take draconian measures such as furloughs.
If Congress is able to reach a bipartisan agreement on these three critical elements, airlines are committed to ensuring that:
- If worker payroll protection grants are enacted, equaling at least $29 billion, participating passenger and cargo air carriers will not furlough employees or conduct reductions in force through August 31, 2020.
- If loans and/or loan guarantees are enacted, equaling at least $29 billion, participating passenger and cargo air carriers commit to:
- Placing limits on executive compensation;
- Eliminating stock buy backs over the life of the loans; and
- Eliminating stock dividends for the life of the loans.
We are united as an industry and speaking with one voice. We urge you to swiftly pass a bipartisan bill with worker payroll protections to ensure that we can save the jobs of our 750,000 airline professionals who are coming to work every day to serve the traveling and shipping public.
Thank you,